EU backs reforms in Azerbaijan’s pension-insurance system

Azerbaijan and the European Union are working on a new twinning project in the pension-insurance sphere, chairman of Azerbaijani State Social Protection Fund Elman Mehdiyev told journalists on Jan.24.

Currently the work is being carried out at the expert level with partners from Latvia and Germany, according to the chairman. The project cost hasn't been determined yet.

Azerbaijan will be assisted within the project in preparation of legislation for the work of private pension funds, the introduction of the system's accumulative component, as well as a number of other issues related to the development of Azerbaijan's pension-insurance system.

The parties will sign an agreement on the starting the implementation of the project in the near future, according to Mehdiyev.

The cumulative part of labor pensions envisages accumulation of real pension capital in the individual accounts of the insured persons, and its direction to the pension provision in accordance with the legislation after increasing its amount by using data management tools until the person reaches the retirement age.